Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Voluntary Supplemental Procedures for Selecting Arbitrators, 44712-44713 [E5-4123]
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44712
Federal Register / Vol. 70, No. 148 / Wednesday, August 3, 2005 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4122 Filed 8–2–05; 8:45 am]
set forth in Sections A, B and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52155; File No. SR–NYSE–
2005–52]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Voluntary Supplemental Procedures
for Selecting Arbitrators
July 28, 2005.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,
notice is hereby given that on July 25,
2005, the New York Stock Exchange,
Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed amendments to its arbitration
rules as described in Items I and II
below, which items have been prepared
by the Exchange. The Exchange filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposal effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change consists of
an extension until November 30, 2005,
of the Voluntary Supplemental
Procedures for Selecting Arbitrators
(‘‘Supplemental Procedures’’).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change. The text of
these statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
VerDate jul<14>2003
15:22 Aug 02, 2005
Jkt 205001
1. Purpose
The proposed rule change is intended
to extend until November 30, 2005 the
Supplemental Procedures, which were
approved by the Commission, most
recently in SR–NYSE–2005–10,5 for a
six-month period ending July 31, 2005.
The Exchange currently has several
methods by which arbitrators are
assigned to cases, including the
traditional method under NYSE Rule
607, pursuant to which Exchange staff
appoints arbitrators to cases (the
‘‘Traditional Method’’). On August 1,
2000, the Exchange implemented a twoyear pilot program to allow parties, on
a voluntary basis, to select arbitrators
under two alternative methods (in
addition to the Traditional Method).6
Upon expiration of the two-year pilot,
the Exchange renewed the pilot for an
additional two years, which expired on
July 31, 2004,7 and then again for an
additional six months through January
31, 2005,8 and ultimately until July 31,
2005.9
Under the Supplemental Procedures,
the first alternative to the Traditional
Method is the Random List Selection
method by which the parties are
provided randomly generated lists of
public-classified and securitiesclassified arbitrators. The parties have
ten days to strike and rank the names on
the lists. Based on mutual ranking of the
lists, the highest-ranking arbitrators are
invited to serve on the case. If a panel
cannot be generated from the first list,
a second list is generated, with three
potential arbitrators for each vacancy,
and one peremptory challenge available
to each party for each vacancy. If
vacancies remain after the second list
has been processed, arbitrators are then
randomly assigned to serve, subject only
to challenges for cause.
The second alternative to the
Traditional Method is entitled
Enhanced List Selection, in which six
5 See Exchange Act Release No. 51085 (January
27, 2005), 70 FR 5716 (February 3, 2005).
6 See Exchange Act Release No. 43214 (August 28,
2000), 65 FR 53247 (September 1, 2000) (SR–NYSE–
00–34).
7 See Exchange Act Release No. 46372. See also
Exchange Act Release No. 47929 (May 27, 2003), 68
FR 32791 (June 2, 2003) (SR–NYSE–2003–15).
8 See Exchange Act Release No. 49915 (June 25,
2004), 69 FR 39993 (July 1, 2004).
9 See Exchange Act Release No. 51085, supra note
5.
PO 00000
Frm 00160
Fmt 4703
Sfmt 4703
public-classified and three securitiesclassified arbitrators are selected, based
on their qualifications and expertise, by
Exchange staff. The lists are then sent to
the parties. The parties have a limited
number of strikes to use and are
required to rank the arbitrators not
stricken. Based on mutual ranking of the
lists, the highest-ranking arbitrators are
invited to serve on the case.
Finally, the Supplemental Procedures
provide that the Exchange will
accommodate the use of any reasonable
alternative method of selecting
arbitrators that the parties decide upon,
provided that the parties agree. Absent
agreement as to the use of Random List
Selection, Enhanced List Selection, or
any other reasonable alternative
method, the Traditional Method is used.
The Exchange, pursuant to a separate
filing,10 is proposing amendments to
NYSE Rule 607 which would, in effect,
make permanent a variation of the pilot
program described herein. Pending
Commission approval of those
amendments, the Exchange proposes to
extend the pilot period for the
Supplemental Procedures for an
additional four months, until November
30, 2005.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b)(5) 11 of the Act in that it
promotes just and equitable principles
of trade by ensuring that members and
member organizations and the public
have a fair and impartial forum for the
resolution of their disputes.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the
proposed rule change as one that: (i)
Does not significantly affect the
protection of investors or the public
10 See Exchange Act Release No. 51863 (June 16,
2005) 70 FR 36451 (June 23, 2005) (SR–NYSE–
2005–02).
11 15 U.S.C. 78f(b)(5).
E:\FR\FM\03AUN1.SGM
03AUN1
Federal Register / Vol. 70, No. 148 / Wednesday, August 3, 2005 / Notices
interest; (ii) does not impose any
significant burden on competition; and
(iii) does not become operative for 30
days from the date on which it was
filed, or such shorter time as the
Commission may designate. Therefore,
the foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and Rule 19b–4(f)(6) 13
thereunder. At any time within 60 days
of the filing of the proposed rule change,
the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the Act.
Pursuant to Rule 19b–4(f)(6)(iii) under
the Act,14 the proposal may not become
operative for 30 days after the date of its
filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, and the Exchange must
file notice of its intent to file the
proposed rule change at least five
business days beforehand. The
Exchange has requested that the
Commission waive the five-day prefiling requirement and the 30-day
operative delay so that the proposed
rule change will become immediately
effective upon filing.
The Commission is exercising its
authority to waive the five-day pre-filing
requirement and believes that waiver of
the 30-day operative delay is consistent
with the protection of investors and the
public interest.15 In this regard, the
Commission notes that the proposal is
the extension of a pilot program that has
been in effect at the Exchange since
August 2000. The Commission has also
published for comment amendments to
NYSE Rule 607 which would, in effect,
make permanent a variation of the pilot
program described herein. For these
reasons, the Commission designates the
proposed rule change as effective and
operative immediately. Nothing in the
current notice should be interpreted as
suggesting the Commission is
predisposed to approving on a
permanent basis the proposed variation
of the pilot program.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
12 15
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 For purposes only of accelerating the operative
date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
VerDate jul<14>2003
15:22 Aug 02, 2005
Jkt 205001
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2005–52 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NYSE–2005–52.
This file number should be included
on the subject line if e-mail is used. To
help the Commission process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the NYSE. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSE–2005–52 and should
be submitted on or before August 24,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.16
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4123 Filed 8–2–05; 8:45 am]
BILLING CODE 8010–01–P
PO 00000
16 17
CFR 200.30–3(a)(12).
Frm 00161
Fmt 4703
Sfmt 4703
44713
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52151; File No. SR–PCX–
2005–86]
Self-Regulatory Organizations; Pacific
Exchange, Inc.; Notice of Filing and
Order Granting Accelerated Approval
of a Proposed Rule Change To Extend
the Linkage Fee Pilot Program
July 28, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 21,
2005, the Pacific Exchange, Inc. (‘‘PCX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons and is
approving the proposal on an
accelerated basis for a pilot period
through July 31, 2006.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Schedule of Fees and Charges for
Exchange Services to extend until July
31, 2006 the current pilot program
regarding transaction fees charged for
trades executed on the Exchange that
are submitted through the intermarket
option linkage (‘‘Linkage’’).3 The text of
the proposed fee schedule is available
on the Exchange’s Web site (https://
www.pacificex.com), at the Exchange’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of, and basis for,
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item III below. The
Exchange has prepared summaries, set
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 At the request of the Exchange, the Commission
staff made a change to clarify the statement
regarding the orders to which the transaction fees
apply. Telephone conversation between Steven
Matlin, Senior Counsel, Exchange, and Kim Allen,
Attorney, Division of Market Regulation, on July 26,
2005.
2 17
E:\FR\FM\03AUN1.SGM
03AUN1
]]>Agencies
[Federal Register Volume 70, Number 148 (Wednesday, August 3, 2005)]
[Notices]
[Pages 44712-44713]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4123]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52155; File No. SR-NYSE-2005-52]
Self-Regulatory Organizations; New York Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Voluntary Supplemental Procedures for Selecting Arbitrators
July 28, 2005.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''),\2\ and Rule 19b-4 thereunder, notice is hereby given
that on July 25, 2005, the New York Stock Exchange, Inc. (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed amendments to its arbitration rules as
described in Items I and II below, which items have been prepared by
the Exchange. The Exchange filed the proposed rule change pursuant to
Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(6) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change consists of an extension until November
30, 2005, of the Voluntary Supplemental Procedures for Selecting
Arbitrators (``Supplemental Procedures'').
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The proposed rule change is intended to extend until November 30,
2005 the Supplemental Procedures, which were approved by the
Commission, most recently in SR-NYSE-2005-10,\5\ for a six-month period
ending July 31, 2005.
---------------------------------------------------------------------------
\5\ See Exchange Act Release No. 51085 (January 27, 2005), 70 FR
5716 (February 3, 2005).
---------------------------------------------------------------------------
The Exchange currently has several methods by which arbitrators are
assigned to cases, including the traditional method under NYSE Rule
607, pursuant to which Exchange staff appoints arbitrators to cases
(the ``Traditional Method''). On August 1, 2000, the Exchange
implemented a two-year pilot program to allow parties, on a voluntary
basis, to select arbitrators under two alternative methods (in addition
to the Traditional Method).\6\ Upon expiration of the two-year pilot,
the Exchange renewed the pilot for an additional two years, which
expired on July 31, 2004,\7\ and then again for an additional six
months through January 31, 2005,\8\ and ultimately until July 31,
2005.\9\
---------------------------------------------------------------------------
\6\ See Exchange Act Release No. 43214 (August 28, 2000), 65 FR
53247 (September 1, 2000) (SR-NYSE-00-34).
\7\ See Exchange Act Release No. 46372. See also Exchange Act
Release No. 47929 (May 27, 2003), 68 FR 32791 (June 2, 2003) (SR-
NYSE-2003-15).
\8\ See Exchange Act Release No. 49915 (June 25, 2004), 69 FR
39993 (July 1, 2004).
\9\ See Exchange Act Release No. 51085, supra note 5.
---------------------------------------------------------------------------
Under the Supplemental Procedures, the first alternative to the
Traditional Method is the Random List Selection method by which the
parties are provided randomly generated lists of public-classified and
securities-classified arbitrators. The parties have ten days to strike
and rank the names on the lists. Based on mutual ranking of the lists,
the highest-ranking arbitrators are invited to serve on the case. If a
panel cannot be generated from the first list, a second list is
generated, with three potential arbitrators for each vacancy, and one
peremptory challenge available to each party for each vacancy. If
vacancies remain after the second list has been processed, arbitrators
are then randomly assigned to serve, subject only to challenges for
cause.
The second alternative to the Traditional Method is entitled
Enhanced List Selection, in which six public-classified and three
securities-classified arbitrators are selected, based on their
qualifications and expertise, by Exchange staff. The lists are then
sent to the parties. The parties have a limited number of strikes to
use and are required to rank the arbitrators not stricken. Based on
mutual ranking of the lists, the highest-ranking arbitrators are
invited to serve on the case.
Finally, the Supplemental Procedures provide that the Exchange will
accommodate the use of any reasonable alternative method of selecting
arbitrators that the parties decide upon, provided that the parties
agree. Absent agreement as to the use of Random List Selection,
Enhanced List Selection, or any other reasonable alternative method,
the Traditional Method is used.
The Exchange, pursuant to a separate filing,\10\ is proposing
amendments to NYSE Rule 607 which would, in effect, make permanent a
variation of the pilot program described herein. Pending Commission
approval of those amendments, the Exchange proposes to extend the pilot
period for the Supplemental Procedures for an additional four months,
until November 30, 2005.
---------------------------------------------------------------------------
\10\ See Exchange Act Release No. 51863 (June 16, 2005) 70 FR
36451 (June 23, 2005) (SR-NYSE-2005-02).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) \11\ of the Act in that it promotes just and
equitable principles of trade by ensuring that members and member
organizations and the public have a fair and impartial forum for the
resolution of their disputes.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated the proposed rule change as one that:
(i) Does not significantly affect the protection of investors or the
public
[[Page 44713]]
interest; (ii) does not impose any significant burden on competition;
and (iii) does not become operative for 30 days from the date on which
it was filed, or such shorter time as the Commission may designate.
Therefore, the foregoing rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) \13\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission may summarily abrogate such rule change if
it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the Act.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
Pursuant to Rule 19b-4(f)(6)(iii) under the Act,\14\ the proposal
may not become operative for 30 days after the date of its filing, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, and the Exchange
must file notice of its intent to file the proposed rule change at
least five business days beforehand. The Exchange has requested that
the Commission waive the five-day pre-filing requirement and the 30-day
operative delay so that the proposed rule change will become
immediately effective upon filing.
---------------------------------------------------------------------------
\14\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission is exercising its authority to waive the five-day
pre-filing requirement and believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest.\15\ In this regard, the Commission notes that the proposal is
the extension of a pilot program that has been in effect at the
Exchange since August 2000. The Commission has also published for
comment amendments to NYSE Rule 607 which would, in effect, make
permanent a variation of the pilot program described herein. For these
reasons, the Commission designates the proposed rule change as
effective and operative immediately. Nothing in the current notice
should be interpreted as suggesting the Commission is predisposed to
approving on a permanent basis the proposed variation of the pilot
program.
---------------------------------------------------------------------------
\15\ For purposes only of accelerating the operative date of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSE-2005-52 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-NYSE-2005-52.
This file number should be included on the subject line if e-mail
is used. To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the NYSE. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSE-2005-52 and should be submitted on or before August
24, 2005.
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\16\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4123 Filed 8-2-05; 8:45 am]
BILLING CODE 8010-01-P
